Affin Bank's branch in Seri Petaling, Kuala Lumpur. Affin Bank Bhd is 100% owned by Affin Holdings Bhd. (Photo taken by Hafidz Mahpar for Star Online)
KUALA LUMPUR: Bank Negara Malaysia’s (BNM) approval for the proposed acquisition by Japan’s Daiwa Securities Group Inc or one of its units of a minority stake in Affin Hwang Investment Bank Bhd (AHIB) has lapsed.
In a filing with Bursa Malaysia on Wednesday, Affin Holdings Bhd
said it and Daiwa Securities were unable to finalise the transaction documents in accordance with BNM’s terms and conditions within the stipulated timeframe, which expired on Dec 31, 2016.
BNM, in its letter dated Oct 24, 2016, gave its approval for the proposal subject to certain conditions.
These include the finalisation of the shareholders agreement and related documentations to effect the proposal in accordance with its approval and AHIB getting the necessary approvals from other regulatory authorities, including the Securities Commission, with regard to the proposed change in shareholder.
In its announcement on Oct 25 last year, Affin Holdings said it and Daiwa Securities would review and deliberate on the terms and conditions of BNM’s approval towards the finalisation of the proposal.
Affin Holdings did not say whether it has made or will make an application to BNM to extend the deadline. Neither did it say whether the parties had mutually decided to abort the proposal.
Daiwa and Affin Holdings began their colaboration at the end of 2013 through a business alliance whereby AHIB’s research reports were shared with Daiwa’s global client base and similarly Daiwa’s research reports were shared with Affin’s client base on a co-branded basis.
Affin Holdings is controlled by the Armed Forces Fund Board (LTAT), which owns a 35.42% direct stake in the company and a 20.69% indirect stake through listed subsidiary Boustead Holdings Bhd.
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